After an eventful 2022 for virtual assets, challenges remain for the sector in 2023 with regulatory tightening in many jurisdictions that will affect crypto lending and may impact innovation in the future. Our report explores the current environment and the outlook for major remaining players in the market including DCG. It also compares the experience of centralised and decentralised lenders, and suggests key considerations for stakeholders including regulators, CeFi and DeFi operators, traditional finance and investors.